In a sensitive cable that's part of the new batch of tens of thousands of US diplomatic cables released by the whistleblower site WikiLeaks, the US embassy in Pretoria in 2008 says that South Africa's ''telecommunication liberalization [is] moving at a snail's pace'' and that MultiChoice has a ''strong hold'' regarding exclusive content rights.
The sensitive cable discussing the the Independent Communication Authority of South Africa (Icasa) and the telecommunications market in South Africa, says ''Icasa wants to increase competition in satellite broadcasting but is also concerned about protecting public broadcasting. Although Icasa has made some strides in liberalizing the South African telecommunication market, market entry is still difficult for smaller service providers.''
Regarding the satellite platform MultiChoice the cable says ''MultiChoice has a strong hold on the market through its existing exclusivity rights. MultiChoice has made statement in the press that 'any attempt to undermine the principle of exclusivity would lead to less investment, lower quality, and less content''.
The sensitive cable from 2008 comments: ''Icasa has made some strides in liberalizing the South African telecommunication market; however, lots of obstacles exist for further progress. Established entities such as Telkom and MultiChoice secured market share under prior monopoly regimes, which makes it difficult for new entrants to offer competitive services.''
''A number of smaller mobile service providers have entered the market, but most have yet to turn a profit. Additionally, Icasa has been slow in converting licenses and establishing regulatory frameworks for free-to-air broadcasting and satellite operations that would increase competition.''
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